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Formulas for cash flow and the ratio of debt to equity do [#permalink]
04 Oct 2012, 23:46

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Question Stats:

86% (02:02) correct
14% (01:32) wrong based on 166 sessions

Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.

C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.

D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.

E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.

Re: Formulas for cash flow and the ratio of debt to equity do no [#permalink]
04 Oct 2012, 23:54

My answer is D. A and E are incorrect "they" can refer to small businesses or big businesses. B is incorrect because of incorret usage of incorrect modifier "formulas". C is incorrect because of term " same applicability of formulas"

Cheers! _________________

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Re: Formulas for cash flow and the ratio of debt to equity do no [#permalink]
05 Oct 2012, 00:02

Capricorn369 wrote:

My answer is D. A and E are incorrect "they" can refer to small businesses or big businesses. B is incorrect because of incorret usage of incorrect modifier "formulas". C is incorrect because of term " same applicability of formulas"

Re: Formulas for cash flow and the ratio of debt to equity do no [#permalink]
06 Oct 2012, 06:12

My 2 cents ..

The term - "because they are growing and are seldom in equilibrium" is clearly referring to "small businesses" therefore it must be touching it. In the original sentence it can easily be confused with big businesses i.e. big businesses are growing and are seldom in equilibrium.

Therefore A is wrong ..

B - Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.

B is suggesting that the formulas for cash flow are growing and are seldom in equilibrium. This is clearly not what the sentence is trying to imply ... (common sense) ...

B is incorrect ..

C - Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.

Clearly the mistake which dogged the statement A and B has been rectified here .. So C can be shortlisted ...

D - Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.

The same mistake that dogged A and B is now corrected in D , therefore we can shortlist it as a potential correct answer.

E - New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.

This passage again suggests that established big businesses are growing and seldom in equilibrium .. Therefore it is WRONG ..

We are down to 2 potentially correct choices C & D ...

Out of the two , I think that D delivers the message (that the author of the passage wants to deliver) better, and in a more simplistic form than C . There may well be a grammatical reason for why C is not correct but i have not been able to pin point it. I base my answer on simplicity and clarity.. _________________

"When you want to succeed as bad as you want to breathe, then you’ll be successful.” - Eric Thomas

Re: Formulas for cash flow and the ratio of debt to equity do no [#permalink]
07 Oct 2012, 01:42

Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.

C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.---they refers to the nearest noun small business

D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.----here them refers to the subject i.e small business.

E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.

Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]
29 May 2013, 23:31

Quote:

C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.

The problem with C, among others, is that

We are comparing what "new small businesses are not subject to" with large businesses. We need an verb here. C would be right if the construction were- C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as are established big businesses.

Re: Formulas for cash flow and the ratio of debt to equity do [#permalink]
07 Nov 2013, 15:37

carcass wrote:

Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses.

C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses.

D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses.

E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium.

Formulas for cash flow and the ratio of debt to equity do [#permalink]
04 Jan 2015, 07:40

carcass wrote:

Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium.

A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium. B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses. C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses. D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses. E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium. Later OA

A) Formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses, because they are growing and are seldom in equilibrium. >> they referring back to Formulas or 'new small businesses'?? Also, it is wordy and unclear construction. B) Because they are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to new small businesses in the same way as they do to established big businesses. >> by comma subject rule, they referring to formulas, this is wrong C) Because they are growing and are seldom in equilibrium, new small businesses are not subject to the same applicability of formulas for cash flow and the ratio of debt to equity as established big businesses. >> unclear and wordy construction D) Because new small businesses are growing and are seldom in equilibrium, formulas for cash flow and the ratio of debt to equity do not apply to them in the same way as to established big businesses. >> clear and concise construction E) New small businesses are not subject to the applicability of formulas for cash flow and the ratio of debt to equity in the same way as established big businesses, because they are growing and are seldom in equilibrium. >> unclear and wordy construction. they referring to??

gmatclubot

Formulas for cash flow and the ratio of debt to equity do
[#permalink]
04 Jan 2015, 07:40

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